US Treasury Secretary Janet Yellen stated that they are working with the G20 countries on the global minimum corporate tax, adding that a global minimum tax can be used to ensure that the global economy is developed based on a more equal playing field for taxing multinational corporations, promoting innovation, growth and prosperity.
Yellen made evaluations about the global recovery after the new type of corona virus (Covid-19) outbreak at the event organized by the Chicago Global Relations Council.
Drawing attention to the 3 main goals that guide the economic relations of the USA with the world, Yellen emphasized that the first of these is a stable and growing world economy that benefits the US economy.
Yellen stated that while trying to maintain a strong world economy, attention should be paid to the current and possible risks to financial stability.
WARNING NOT TO WITHDRAW FINANCIAL SUPPORT EARLY
Noting that the second goal is to fight poverty and promote a more inclusive global economy, Yellen said that if action is not taken, there may be a deepening global separation between rich and poor countries.
Emphasizing that it is too early for the developed economies to declare victory, Yellen said, “I urge our partners to continue strong financial support, avoid withdrawing support too soon to encourage strong recovery and help prevent the emergence of global imbalances.”
Expressing that the epidemic must be stopped by making vaccines and tests as accessible as possible in order to help poor countries overcome the crisis, Yellen pointed out that low-income countries are at risk of falling behind the queue and that they may not be included in the scope of vaccination until 2023 or 2024 at the current pace.
Yellen highlighted the need for more work and funding for low-income countries to secure vaccine purchases, to address production deficiencies and to finance domestic launch.
AN OTHER GLOBAL CHALLENGE ADAPTING TO TECHNOLOGICAL CHANGE
Emphasizing that the challenges are global, Yellen pointed out that Covid-19 clearly demonstrated that pandemic responses require global cooperation, and that they are working with partners to be prepared for future shocks.
Yellen explained that another global challenge is how to adapt to technological change, but that digitalization raises concerns about inequality and cyber security.
Noting that he will work closely with domestic and allies to promote innovation in digital finance for cheap, instant and reliable commercial and financial transactions, Yellen also said that they will also work to modernize legal and regulatory frameworks to take into account the risks and threats inherent in the use of these new technologies. brought.
“WE WORK WITH G20 FOR CORPORATE MINIMUM CORPORATE TAX”
Yellen pointed out that another result of the interconnected world is the race to reduce corporate tax rates that has been going on for 30 years.
“Competitiveness is more about how US-based companies deal with other companies in their global merger and acquisition proposals. This means that governments have stable tax systems that provide enough revenue to invest in essential public goods and respond to crises, and that all citizens have a fair share of government financing burden. It’s about making it share. “
Stating that they are working with G20 countries to determine the global minimum corporate tax rate, Yellen said, “We can use a global minimum tax together to ensure that the global economy develops based on a more equal playing field for taxing multinational companies, promoting innovation, growth and prosperity.”
Pointing out that the biggest long-term threat facing the world is climate change, Yellen added that they are working to ensure that climate risk is integrated into the financial system so that financial institutions, regulators and investors can make informed decisions.